Goodbye Alteryx

Alteryx is getting taken private by Clearlake and Insight for $4.4B ($48/share). The stock was over $67 back in Feb/Mar, then dipped sub-$30 by Aug. Looking further back, it was hitting $178 in July 2020, so was sold at -73% off those all-time highs.

I haven’t missed it from the days it was in many a Saulian port. From the way back machine … my Alteryx is not SaaS post spurred a lot of discussion and disagreement back in 2019. I think all my criticisms were eventually completely justified.

To recap what has happened since:

  • Growth slowed way down, which when combined with their licensing (recognized more upfront than true SaaS), meant a really rapid slow down
  • The founder/CEO finally realized he was too slow to move to cloud, and stepped aside
  • He installed a new CEO, and replaced top mgmt
  • They were so behind in cloud, they bought Trifecta (Cloud ETL service) in early 2022 to try to jump-start their efforts

This rise of Generative AI in early 2023 SHOULD HAVE BEEN THEIR MOMENT as a major MLOps platform … and instead this year brought a huge slowdown. Growth has HEAVILY FALTERED during the rockier environment. Revenue had rapidly slowed to +4% in Q2, rebounding to +8% in Q3.

From Q422->Q323:

  • Revenue +73% → +26% → +4% → +8%
  • ARR +31% → +25% → +22% → +21%

Note: Q4 & Q1 were both slightly bloated from the acquisition of Trifacta a year prior on 02/07/22, which was lapped in the middle of Q1. However, mgmt said that Trifacta only contributed $22M of FY22 ARR, so was likely <2% contributor in Q4 and <4% in Q1.

Pretty ignoble end to a company that was slow to transition away from Windows and embrace the cloud. Instead of this year having Generative AI rise as their savior, it instead brings their swan song from the public market.

Alteryx has been in a rut since 2020. Even data platforms like MongoDB and Elastic have proven better plays over 2021-2023.

Last 5Yr: MDB +466%, ESTC +82%, AYX -5%.
Last 1Yr: MDB +103%, ESTC +105%, AYX -7%

Ultimately, I think the need for Alteryx is potentially being supplanted by MLOps platforms, more modern no-code cloud ETL services, and now data lakehouse engines from the hyperscalers, Databricks, and Snowflake that help run AI/ML directly adjacent to the data.

Don’t let the door hit ya on the way out, Alteryx.

-muji

59 Likes

Yaaaa just another Silicon Valley story. They come and they go and history is history. Any on-premises application to cloud migration is expensive and time consuming. And it takes special engineering skills. I saw this deficiency a few years ago with Alteryx as well as Atlassian TEAM (Jira) and sold both stocks for a good profit. I only wished I had gotten back into TEAM earlier this year as it has fully recovered, unlike AYX.

Anyway the door missed me this one time.

-zane

6 Likes

Well, it’s been a long and bumpy ride that will end in January with worthless $70 LEAPS.

For a while, it looked like they had a product that could bring a lot of value to enterprises.

They just couldn’t make it to sell enough license seats to their customers and were too slow or unable to successfully shift to the SaaS market.

R.I.P. Alteryx.

DJ

3 Likes